Enterprise, IT management

Dell Perot Sale: Atos Denies Buyout, Acquisition Rumors

Michael DEll
Is Dell still trying to sell Perot Systems before swallowing EMC for $67 billion later this year? If so, Atos -- the French IT outsourcing company -- has denied being among the potential bidders.

Updated February 16, 2016: NTT apparently is the leading candidate to buy Perot Systems from Dell.

Our Previous Report

In a February 4 statement, Atos said:

"Considering the information published in the Press several times and again this morning regarding Atos involvement in the sale process of Perot by Dell, Atos makes the following statement: Atos formally denies the information published in the press related to its current involvement in the sale process of Perot."

Rumors about Dell potentially selling Perot Systems popped up in December 2015 and continued in January 2016. Multiple media sites suggested Michael Dell wanted to strengthen his company's balance sheet ahead of the $67 billion buyout of EMC and VMware, which is expected to close between May at October 2016.

According to December and January reports, potential suitors for Perot Systems allegedly included Atos (which the company now denies); Genpact, an IT services firm based in New York that was formerly part of GE; and CGI, a Canadian IT firm, according to Re/code. Another potential bidder, Tata Consultancy Services (TCS) apparently backed out of the potential bidding because of valuation concerns, according to The Economic Times.

Dell Rumor Mill

From mid-January to the present, rumors about Dell negotiating to sell Perot Systems mostly went quiet. Some pundits wondered if Dell's apparent asking price -- allegedly $5 billion -- was simply too high. Others wondered if Dell was trying to manage too many variables -- buying EMC and VMware, potentially selling Perot, preparing a SecureWorks IPO -- at the same time.

Things got extra complicated when rumors about Dell potentially selling some of its software assets -- perhaps AppAssure, Quest Software and SonicWall -- also surfaced. But those rumors have also quieted down, and Dell most recently announced a new Identity and Access Management solution for its security partners -- a good sign for SonicWall VARs and MSPs.

Dell Must Address Uncertainty

Still, at some point Dell will need to address the Perot Systems rumors. Many of Dell's larger IT partners will certainly welcome a Perot Systems sale -- if such a deal materializes.

In the meantime, the mainstream media and the technology media continues to chase Dell rumors. And each rumor potentially leads to misinformation about Dell's overall business strategy.


Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.